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  Title	Zacks Industry Outlook Highlights Grand Canyon Education, McGraw Hill, Adtalem Global Education, Perdoceo Education and Nerdy
  ID	28872951
  External ID	19d102f6bdfa561668d37217da2f9921
  Author	Zacks
  Published Date	Dec. 3, 2025, 8:51 a.m.
  Summary	Chicago, IL – December 3, 2025 – Today, Zacks Equity Research discusses Grand Canyon Education, Inc. LOPE, McGraw Hill, Inc. MH, Adtalem Global Education Inc. ATGE, Perdoceo Education Corp. PRDO and…
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  URL	https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-grand-canyon-education-mcgraw-hill-adtalem-global
  Sentiment	Negative: 0.01778    Neutral: 0.21536    Positive: 0.76686
  Relevance	0.01767

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  Content ID	36499008
  Key	b594be31-8d0e-411f-ad6f-89218ad95795
  Content	Chicago, IL – December 3, 2025 – Today, Zacks Equity Research discusses Grand Canyon Education, Inc. LOPE, McGraw Hill, Inc. MH, Adtalem Global Education Inc. ATGE, Perdoceo Education Corp. PRDO and Nerdy, Inc. NRDY. Link: https://www.zacks.com/commentary/2797551/5-school-stocks-leveraging-ai-digital-learning-healthcare-shortages The Zacks Schools industry is staging a clear recovery, supported by sustained growth in demand for applied and career-oriented education across healthcare, skilled trades, cybersecurity and IT. The current labor environment favors institutions that deliver job-ready skills, and policy momentum continues to shift toward non-degree and workforce-aligned pathways. Most notably, the sector is playing a central role in addressing the acute shortage of healthcare professionals through intensive, industry-linked training models. Technology is emerging as a key competitive differentiator. Operators are deploying adaptive learning systems, data-driven instruction, and scalable online platforms to enhance student engagement and deliver flexibility for working learners. These digital investments not only drive better learning outcomes but also improve cost efficiency and margin resilience. Industry consolidation is accelerating, with larger providers acquiring niche assets to expand program breadth and realize operating leverage. Recent policy developments—such as expanded Workforce Pell access, higher tuition assistance caps, and incremental support for veterans—appear constructive rather than disruptive, reinforcing affordability and outcomes-based funding. While regulatory scrutiny, affordability, and funding visibility remain notable risks, demographic and policy tailwinds support the growth outlook. Rising participation from adult and minority learners, combined with strong state/federal support for vocational education, positions the sector for continued enrollment and revenue expansion. Key beneficiaries heading into 2026 include Grand Canyon Education, Inc., McGraw Hill, Inc., Adtalem Global Education Inc., Perdoceo Education Corp. and Nerdy, Inc.. The Zacks Schools industry comprises for-profit education companies that offer undergraduate, graduate and specialized programs in finance, accounting, analytics, marketing, healthcare, business and technology. They are engaged in offering career-oriented programs in the fields of business and management, nursing, computer science, engineering, information systems and technology, project management, cybersecurity and criminal justice. The industry players also offer child-care services and career-oriented post-secondary courses. Some companies within the industry also provide yoga classes and yoga-related retail merchandise-integrated fitness classes, along with conducting workshops and teacher training programs. Rising Demand for Workforce-Oriented Programs: After years of declining enrollment, the for-profit education sector in the United States is witnessing renewed interest in programs that offer direct pathways to employment. For-profit institutions have used their flexible operating models to expand offerings in short-term credential programs, healthcare training, cybersecurity, and skilled trades. As the labor market places greater value on job-ready skills over traditional degrees, these programs are gaining traction, especially among adult learners and career switchers. Government workforce development initiatives, such as reskilling grants and federal partnerships to promote non-degree pathways, have also boosted demand. Additionally, the ongoing digital transformation across sectors has spurred interest in IT boot camps and tech-aligned certifications, areas where for-profit providers have built a scalable presence. Meanwhile, healthcare and global institutions have been making substantial contributions to the companies' financial success. The U.S. healthcare sector is presently grappling with a pronounced shortage of skilled professionals, which is posing a significant risk to the quality of care and exacerbating health disparities across the country. The companies have designed their programs to be rigorous and well-suited to address the workforce needs of the healthcare industry. Industry stakeholders also anticipate a future where the demand for healthcare professionals will outstrip the available supply. Amid the pressures of regulation and shifting demographics, the sector is witnessing consolidation. Larger, better-capitalized players are acquiring niche or financially weaker institutions to expand program offerings or gain regional accreditation. Strategic Education's STRA acquisition of tech bootcamps and Adtalem's continued integration of Walden University highlight ongoing M&A activity aimed at diversification and scale. Private equity interest in edtech and career-aligned training platforms also signals long-term confidence in segments of the for-profit education market that can prove ROI for students and employers alike. Meanwhile, Congress passed "Workforce Pell" in July 2025, expanding Pell eligibility to high-quality, short-term programs beginning July 1, 2026. For providers with accredited, outcomes-verified certificates in healthcare, IT, and skilled trades, this expands the addressable market and could structurally lift enrollment and pricing power, subject to program-quality metrics. Online Education and Tech Integration Drive Market Differentiation: The acceleration of digital learning continues to be a critical differentiator for for-profit colleges. Institutions like Grand Canyon Education, Strategic Education, and Adtalem have invested heavily in learning management systems, data analytics and adaptive learning tools to personalize instruction and enhance student engagement. The shift toward hybrid and asynchronous formats has allowed for-profit players to serve non-traditional and working students more effectively than many public institutions. Scalable digital platforms have also helped manage operating costs, enabling some companies to maintain or improve margins despite enrollment challenges. Affordability, Operational & Financial Challenges: Affordability remains a core concern for prospective students, especially with interest in student loan reform gaining momentum. While income-driven repayment plans and forgiveness initiatives may ease financial stress for borrowers, they also highlight systemic cost concerns associated with for-profit programs. For-profit educators face several operational and financial headwinds. Most of their revenues come from tuition and federal aid, so they are vulnerable to any enrollment swings or cuts in government funding. Any dip in student numbers (due to competition, demographic trends or economic cycles) can quickly hit operating income. Compliance and administrative costs are also high, as schools must meet strict reporting and quality standards under Title IV. FAFSA processing challenges continue, prompting late disbursement flexibilities and straining working capital for institutions reliant on Title IV funding cycles. Industry players also often spend heavily on recruitment and advertising to attract students, squeezing margins. Again, macroeconomic factors (like rising interest rates or budget cuts at the state/local level) can constrain school and district purchasing of edtech products, indirectly pressuring vendors' top lines. The Zacks Schools industry is a 19-stock group within the broader Zacks Consumer Discretionary sector. The industry currently carries a Zacks Industry Rank #65, which places it in the top 27% of more than 250 Zacks industries. The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates impressive near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. The industry's positioning in the top 50% of the Zacks-ranked industries is a result of a higher earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group's earnings growth potential. Since October 2025, the industry's earnings estimates for 2025 and 2026 have increased to $1.46 per share (from $1.33) and $1.70 per share (from $1.64), respectively. Before we present a few stocks that you may want to consider for your portfolio, let's take a look at the industry's recent stock-market performance and valuation picture. The Zacks Schools industry has lagged the broader Zacks Consumer Discretionary sector and the Zacks S&P 500 Composite over the past year. The stocks in this industry have collectively lost 6.9% compared with the broader sector's 2.9% decline. Meanwhile, the S&P 500 has increased 16.3% in the said period. On the basis of the forward 12-month price-to-earnings ratio, which is a commonly used multiple for valuing for-profit education stocks, the industry is currently trading at 12.58X versus the S&P 500's 23.57X and the sector's 18.76X. Over the past five years, the industry has traded as high as 217.18X, as low as 12.58X and at a median of 20.27X. Below, we have discussed five stocks from the industry that currently carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and have solid growth potential. You can see the complete list of today's Zacks #1 Rank stocks here. McGraw Hill: Based in Columbus, OH, this company is a major global provider of education solutions for preK–12, higher education, and professional learning, serving millions of students and educators worldwide. McGraw Hill has been gaining from the rapid expansion of its digital and subscription-based model, which now accounts for the majority of revenue growth, including a 7.6% increase (in the second quarter of fiscal 2026) in digital revenue and strong momentum in re-occurring revenue. The company is gaining share in Higher Education, where revenue rose 14% and market share reached 30% in the quarter, supported by high adoption of Inclusive Access and its Evergreen content model. Growth is further powered by new AI-driven products such as AI Reader, Sharpen Advantage, ALEKS Adventure and Calculus, and McGraw Hill Plus, which are boosting user engagement and opening incremental revenue opportunities beyond the core curriculum. These innovations are backed by a strong balance sheet, operational efficiency and strategic positioning ahead of major K-12 curriculum cycles, especially California Math and Florida ELA. McGraw Hill stock — currently sporting a Zacks Rank #1 — became a publicly traded company in July 2025 and surged 61% in the past month. McGraw Hill has seen an upward estimate revision for fiscal 2026 earnings to $1.63 per share from $1.14 over the past 30 days. This company's earnings for fiscal 2026 are expected to be $1.63 per share on $2.05 billion in revenues. MH's earnings topped the Zacks Consensus Estimate in the last reported quarter, with the surprise being 300%. Moreover, MH's three-to-five-year expected earnings per share growth rate is currently pegged at 6.5%. Grand Canyon Education: Based in Phoenix, AZ, Grand Canyon operates as an education services company in the United States. Grand Canyon Education's growth is driven by scalable online expansion, supported by new programs, more than 5,500 employer partnerships, competitive pricing and strong retention, along with rising demand from younger students choosing online formats. Its hybrid ABSN and healthcare programs continue to accelerate due to efficient prereq pipelines and strong outcomes in a market facing nursing shortages. The affordable ground campus and flexible delivery model support enrollment even as traditional college demand declines. Diversification into education, business, counseling, technology and workforce development further broadens its addressable market and lessens reliance on any single vertical. Grand Canyon stock — currently carrying a Zacks Rank #2 — has lost 5.6% over the past year. Grand Canyon has seen an upward estimate revision for 2025 and 2026 earnings to $9.08 per share (from $9.07) and $10.10 per share (from $10.09) over the past 30 days, respectively. This company's earnings for 2025 and 2026 are expected to register 12.9% and 11.2% growth from a year ago, respectively. LOPE's earnings topped the Zacks Consensus Estimate in three of the trailing four quarters and met in one occasion, with the average surprise being 3.7%. Moreover, LOPE's three-to-five-year expected earnings per share growth rate is currently pegged at 15%. Perdoceo Education: Headquartered in Schaumburg, IL, this company offers postsecondary education programs through online, campus-based and blended learning formats across the United States. Perdoceo has been benefiting from consistently rising student interest, supported by improved retention, engagement and academic outcomes across its institutions. Expansion of program offerings—including new modalities, health-related programs and hybrid formats—is widening its addressable market and enhancing enrollment trends. The corporate student programs at CTU and AIU continue to scale, providing a stable and growing channel of learners. The recent addition of the University of St. Augustine is also a major catalyst, broadening the portfolio into high-demand fields and strengthening overall performance. Finally, Perdoceo continues to invest in technology, marketing and admissions, including the use of AI for identifying prospective students, which is helping sustain growth and drive execution improvements. Perdoceo, carrying a Zacks Rank #2, has gained 0.6% over the past year. It has seen an upward estimate revision for the 2025 and 2026 earnings estimates to $2.55 per share (from $2.52) and $2.78 per share (from $2.73) over the past 30 days, respectively. This company's earnings for 2025 and 2026 are expected to grow 11.4% and 9%, respectively. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 5%. Moreover, PRDO's three-to-five-year expected earnings per share growth rate is currently pegged at 15%. It also has a favorable VGM Score of A, making it a potentially interesting investment opportunity. Adtalem: The company provides healthcare-focused education in the United States and across Barbados, St. Kitts, and St. Maarten, and are headquartered in Chicago, IL. Adtalem has been gaining from sustained enrollment momentum across all three segments, particularly Walden and the Medical/Veterinary schools, its differentiated position as the largest healthcare-focused educator addressing structural talent shortages and expansion of programs and modalities such as Chamberlain's growing pre-licensure online BSN. Also, strategic partnerships that enhance access and career relevance (e.g., with Google Cloud, American Association of Post-Acute Care Nursing, ScribeAmerica), improved digital platform, student experience and retention initiatives, disciplined marketing and operational excellence, global and direct-admit pathways that broaden the recruitment funnel, and strong financial flexibility enabling continued capacity expansion, technology investment, and selective M&A bode well. Adtalem stock — currently carrying a Zacks Rank #2 — gained 1.1% in the past year. Adtalem has seen an upward estimate revision for fiscal 2026 and 2027 earnings to $7.85 per share (from $7.73) and $8.92 per share (from $8.77) over the past 30 days, respectively. This company's earnings for fiscal 2026 and 2027 are expected to grow 17.7% and 13.7%, respectively. ATGE's earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 17.4%. Moreover, ATGE's three-to-five-year expected earnings per share growth rate is currently pegged at 15%. Nerdy: Nerdy runs an online live-learning platform in the United States and is headquartered in St. Louis, MO. Nerdy has rebuilt its platform with AI-generated code, which is speeding up product launches and improving reliability and engagement. It is integrating its tutoring, practice tools, classes and AI products into one unified experience that enhances retention and multimodality usage. It is also reducing costs and improving efficiency through AI-driven automation in areas such as tutor vetting, customer service and sales operations. New leadership and a strengthened operating structure are improving execution and accelerating product velocity. Nerdy is also benefiting from higher-value learning memberships and improved user retention due to product and pricing enhancements. Finally, the company is expanding in the institutional segment with Live+AI tutoring, high-dosage programs and deeper alignment with school intervention frameworks, which position it for longer-term demand from schools. Nerdy stock — currently carrying a Zacks Rank #2 — has lost 12.4% in the past year. Nerdy has seen an improvement in estimate revision for 2025 and 2026 loss to 32 cents per share (from 34-cent loss) and 20 cents per share (from 30-cent loss) over the past 30 days, respectively. NRDY's earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 34.7%. It also has a favorable VGM Score of B, making it a potentially interesting investment opportunity. Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/ Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com https://www.zacks.com Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release. The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Grand Canyon Education, Inc. (LOPE) : Free Stock Analysis Report Adtalem Global Education Inc. (ATGE) : Free Stock Analysis Report Perdoceo Education Corporation (PRDO) : Free Stock Analysis Report Nerdy Inc. (NRDY) : Free Stock Analysis Report McGraw Hill, Inc. (MH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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